Friday, Nov. 1, 2024
If you’ve been sitting on the sidelines, wondering when the right time to buy a home or invest in real estate might be, recent market trends could provide your answer. With a 43% increase in inventory above the five-year average, Ottawa’s market has shifted significantly. This means more choices for buyers and less of the high-pressure, competitive environment that dominated past years.
Understanding Inventory and Its Impact
In the height of the pandemic, finding a home often meant facing fierce bidding wars and sky-high prices. But now, with the increase in available properties, buyers can take a more measured approach. You can explore your options, compare different homes, and make decisions that fit your budget and lifestyle without feeling rushed. This surge in inventory allows buyers to have more leverage when negotiating with sellers and opens up possibilities for securing a lower price.
Pricing Trends to Keep in Mind
While home prices are up by just 0.9%—trailing behind the inflation rate of 2-3%—this subtle shift indicates that prices are stabilizing. For potential buyers, this can mean better negotiation power and the ability to secure a home at a more reasonable rate compared to recent years. Plus, with sellers increasingly aware of the market’s current conditions, there’s a greater chance they may be open to offers below asking or willing to include additional perks, such as closing cost assistance or minor repairs.
Interest Rate Insights
Over the past year, interest rates have played a large role in most people’s buying decisions. While five-year fixed mortgage rates may not be immediately affected by recent changes in the Bank of Canada’s prime rate, variable-rate mortgages could offer more flexibility and savings as the rates shift. The recent drop in the prime rate by 1.25% over the last five months signals that borrowing costs for variable-rate loans are easing, which can boost buyer confidence and affordability.
Navigating the Current Market with Expert Help
A key thing to remember in any real estate transaction is the importance of expert guidance. With market conditions in constant flux, having a knowledgeable REALTOR® by your side can make all the difference. An experienced professional will help you interpret the latest data, understand the implications for your specific situation, and craft an approach that positions you for success.
Taking the Next Step
Whether you’re buying your first home or considering an investment property, now is a great time to act. The right approach could set you on the path to building wealth wisely through real estate. If you’re unsure where to start or want personalized advice, consider scheduling a clarity call to discuss your specific needs and options. The Dekker Team is dedicated to helping you achieve your real estate goals with confidence.
Join the Dekker Team Community
We invite you to become part of our supportive and resourceful community. Join us by emailing together@dekkerteam.com for expert insights, helpful resources, and a partnership that goes beyond just the transaction. Together, let’s clarify your options so your wisdom will flow.
